Winnipeg Free Press

Winnipeg Free Press (Newspaper) - September 3, 1981, Winnipeg, Manitoba Fieser copy 10 Winnipeg free september 1981 Craik estimates Energy Accord to Cost billion by Mary Ann Fitzgerald the Canad Aalberta Oil pact will Cost Manitoba Consumers about billion More for Energy costs Over the next five provincial Energy minister Don Craik Esti mated the consumer is going to find it painful in the next five years to adjust to the new Craik told a press the Manitoba government will continue its pressure to have Ottawa use some of its gains from the new agreement to Cushion Rush to alter heat systems not expected Utility spokesmen say they cannot see any immediate changes in Consumers heat ing preferences because of tuesdays Energy pricing Jim Winnipeg Hydro director of business said homeowners will continue to switch from Oil to electricity or prompted More by a need to update their furnaces than the desire to evade rising Oil if a Guys got a Good heating system Hes going to hang in there for a said Manitoba Hydro spokesman Rudy Boi according to tuesdays the Cost of heating Oil is expected to Rise to about 56 cents a litre or a gallon by the end of the Price of natural Gas will increase in a fixed schedule of 50 cents per thousand cubic feet a year beginning the average Winnipeg Homeowner currently pays per thousand cubic feet of Federal Energy minister Marc Lalonde has said Gas prices will remain at less than two thirds the Price of substitution program greater Winnipeg Gas marketing manager Bill Salo said the agreement May cause More people to take advantage of the Canada Oil substitution program but could not say How the Gas rate increase would affect the Cost Grant covers 50 per cent of eligible conversion costs up to a Maxi mum of and is available to House businesses and Salo says he has received More than applications for conversion to Gas As of the end of a 61percent increase Over last the government Accord also prompted a number of inquiries to Manitoba Hydro about conversion to Federal government statistics indicate that it costs a year to heat a on Storey Manitoba Home with Gas and to heat it with Boivin said projections for 1983 have pegged the Gas Cost at while the electricity rate is the same due to the five year rate freeze set by the province in Winnipeg Hydro has estimated that a rate increase would be Nec Essary in 1984 to recover Revenue lost because of the Boivin said Manitoba Hydro rate increase once the freeze is lifted should not go higher than the inflation the effects of higher Oil prices particularly for Northern residents and senior Craik its pretty darn Clear who has the responsibility for cushioning the effects when our calculations show a Cash flow out of the province of he the Money will go to the Federal govern the Alberta government and the Oil under the Ottawa share of the revenues will be 29 per Albertas 34 per cent and the Industry 37 per by the end of the five year Alberta Ottawa the Price of Home heat ing Oil will be cents a compared to cents under the old National Energy program and Gas per litre will Cost compared to cents under the Craik some economists say the agreement will add million to Manitoba Oil Bill this million More in 1982 and million More in each of the remaining years of the Manitoban Gas costs will escalate by million this year million in each succeeding year of the agree they on the other Side of the the Manitoba government expects to reap million in royalties Over the next five years per cent More than they would receive under the old National Energy Craik he said the government Hast yet calculated the additional returns from its per cent fuel the agreement also holds incentives to go after new Oil in the minister about 50 per cent of Manitoba Energy Supply comes from 30 per cent from Gas and about 20 per cent from electrical in taking into account transportation he said the agreement boosting natural Gas prices by 25 cents a thousand cubic feet every six months will keep its Price at about the current level of 65 per cent of Oil he the Manitoba which froze the rates on its plentiful supplies of Hydro is concerned that by when the freeze electrical Power will be cheaper than both Gas and resulting in industries using Hydro Power for unsuitable such As Cement Craik at that he he didst Antici Pate a great move to electrical Home heating simply because of the High costs of Craik said the Revenue split Between Alberta and the Industry is not bad and should provide added incentives to renew Oil while admitting it is going to be a rough Road for Craik said the Energy agreement will allow Canada to get on with achieving its goal of Energy self sufficiency by Canada a fortunate country because we have the ability to become self we now have the program to do but we Are going to pay a Price to do while the agreement should relieve some of the pressures on Canadas foreign Exchange Craik also referred to the Strong inflationary Impact experienced by major Industrial countries which have absorbed most or All of the Sharp increases in world Oil fuel costs May Force seniors to give up cars by Sheila bean senior citizens and others on fixed incomes say this weeks Energy agreement will hit them hard and May Force some to give up driving in order to make ends in sure i will have to give up my said Fred a resident of the notre Dame senior theres no Way i can pay a 1 wont be Able to get around very Well because i cant walk too my legs wont let me and i dont like waiting for a an example a Manitoba pensioner receives slightly More than a paying a gallon for gasoline in the next five years Means a bigger percentage from his or her income than can be a senior at the Stra Brook senior who asked not to be agreed that the added costs would curtail her she want prepared to give up her she suggested people who Are younger and More Able should take some responsibility for the Energy what i think a lot of people Young people who Are driving should be on she get on a bicycle or or take the she finds the Cost of heating fuel a bigger in the Price spiral for Home heating Oil is forcing her to move to a less expensive Ive been trying to get into a senior citizens there Are lots in the but there Are waiting lists a mile and i cant get into Sheila coordinator of the senior citizens Job says Many of the seniors who work Par time Are not using their cars because it is too expensive even i honestly dont think theres any Way seniors can maintain their Homes and unless the pension but How can it increase wheres the Money coming from someone else would have to give a slice of his earnings to give the seniors Energy agreement applauded by automobile association Ottawa up the two million member Canadian automobile association has applauded the Federal and Alberta govern ments in reaching an Oil pricing and taxation finally puts an end to the Long and bitter confrontation a dispute that has Hurt the Canadian Economy Robert executive Vic president of the As said in a statement Erb said the agreement will encourage fuel accelerate research and development and pave the Way for Energy but Erb expressed concerned the Price increases will Lead to Windfall tax and revenues in excess of those required to ensure Security of Supply and Energy self All charges or taxes required to achieve these goals should in no Case be used by governments As general operating Revenue or to reduce operating he Erb said the association is continuing to urge Ottawa to remove what the association Calls a discriminatory tax on transportation fuel imposed in n it v i u Lougheed says the Energy pact wont affect other areas of no carryover Calgary up the agreement on Oil pricing Doest necessarily set the stage for favourable talks on the Constitution and Revenue Alberta pre Mier Peter Lougheed said in a news conference after signing the memorandum of agreement on Oil pricing in Ottawa on Lough eed said he separated the 1 really cant see this particular situation affecting ther the fiscal or Constitution Lougheed Lougheed and provincial Energy minister Merv Leitch stuck to the line voiced tuesday that the Oil pricing package was a Victory for All canadians and there were no winners or losers in the Federal or Alberta asked whether Alberta gained everything it asked Lougheed sidestepped the the National Energy policy forced Alberta to withhold approval of Oil Sands Meg projects and Cut Oil product Lutu greed that leverage enabled Alberta to insist on its objectives that the province regain control of its that Ottawa rescind the Export tax on natural Gas and that Ottawa not impose the National Energy program unilaterally on the producing he said it was also important the Oil and Gas Industry receive sufficient Cash flow from the agreement to main Tain and expand its exploration the Only major Concession was a Compromise on the final Domestic Price of Canadian crude Alberta settled for 75 per cent of the forecast world Price in mid 1986 when the agreement expires instead of three Quad ters of the actual world Lougheed said Alberta Likely have won that Battle in the Long run because Ottawa could invoke a provision of the British North America act if prices Rose too the provision gives Ottawa the Power to override provincial rights in interests of the National Good to Safe guard order and Good 7 i m f were making an Only 3 Days left in our fall Home furnishing Sale i to save i you Money h Check our flyer for More super buys s modular 5 Wall units in Pecan Wood finish Short Glass no door unit Long Glass door unit drop front Wall unit traditional swivel Rocker features solid Frame durable Commodore desk Palliser sofa suite this sofa chair has a durable Nylon cover in Elan s Sony 20 color to embassy Dinette suite features 60 table and 4 Cane features trin Itron color tone control 14button tuning i Commodore double ped1 swivel titter Arm chair with wooden Arm rests chair Tex wooden stacking chair features wooden seat Quantity 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